Wiz’s decision to walk away from a proposed $23 billion acquisition by Google could have significant consequences for the tech sector, particularly for Microsoft. The Israeli cybersecurity firm was in discussions with Google to enhance its cybersecurity offerings, especially after a recent major outage involving CrowdStrike, which affected numerous businesses and government operations.
Wiz’s CEO Assaf Rappaport stated that rejecting the deal was a difficult choice, as the company aims to grow towards a $1 billion annual revenue and pursue an IPO instead. Wedbush analyst Dan Ives noted that concerns from investors and ongoing antitrust issues likely contributed to the failed deal, as Google has faced increasing scrutiny from regulators.
Ives predicted that the cancellation of the acquisition would create “ripple effects” throughout the industry. He suggested that Google would persist in expanding its cybersecurity capabilities despite the loss of the Wiz opportunity, a strategy that Microsoft is also expected to adopt.
Ives pointed out that there is a need for consolidation in the cybersecurity space and anticipated that Microsoft would look to enhance its cybersecurity offerings in the coming months. This is particularly relevant after Microsoft recently encountered backlash due to the disruption caused by a CrowdStrike software issue, which pointed to potential vulnerabilities in its cybersecurity measures.